Snacks are transforming from luxuries into necessities, said a report from China Wealth released Wednesday.

China’s snack food industry registered a compound growth rate of 6.7 percent from 2013 to 2019, according to a recent analysis by the Food Partner Network Industry Research Center.

It is estimated that the rate will stay above 6 percent with the total sales of snacks approaching 3 trillion yuan ($432.3 billion) in 2020 and over 4 trillion yuan ($576.4 billion) in 2025.

Wan Zhe, a visiting researcher at the Chongyang Institute for Financial Studies, Renmin University of China, said the increase in snack consumption reflects the vibrant domestic demand in the Chinese economy.

In terms of the demand side, as snacks, traditionally luxuries, are transforming into necessities. Chinese people have a strong demand for new snacks with higher quality, showing great spending power.

With regard to the supply side, the upgrading of the snack food industry and a higher number of different snack products are available. In addition, more advanced packaging technology and logistics channels make it possible to deliver food from all over the world to many households. All of this boosts the growth of the snack market.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Government closing in on small business lending limit

NEW YORK — The government is closing in on the $349 billion lending limit on its Paycheck Protection Program that is sending relief money to the nation’s small businesses. The Small Business Administration says that it has approved more than…

Credit Suisse taps Santangelo as global co-head of healthcare

(Reuters) – Credit Suisse Group AG (CSGN.S) has named Rob Santangelo as a global co-head of its healthcare investment banking group, according to a memo seen by Reuters on Monday. Santangelo, who is based in New York, will report to…

U.S. senator calls for action on forced labor in China’s Xinjiang

WASHINGTON (Reuters) – A senior U.S. senator on Tuesday accused U.S. firms of willfully ignoring “horrific” forced labor conditions in China’s Xinjiang region and called on the Commerce Department to stop American companies and consumers buying goods produced by such…

China’s Yiwu sees surging Europe-bound freight trains

HANGZHOU – The number of Europe-bound freight trains departing from the city of Yiwu in East China’s Zhejiang province reached 529 this year as of Wednesday, surpassing the total number of last year, according to the train operator. Dubbed Yixin’ou…